3 Things You May Have Missed: How to Negotiate a Commercial Lease

When you are either starting a new business or you’re looking to move your current business to a new location, you will need to negotiate a commercial lease. Hiring a professional lease expert is certainly one way that you can reduce your overall costs and expenses that will be associated with your lease.
But there’s no reason why you couldn’t handle this by yourself (though you’re Holland Homes Northwoods likely going to save more in the long-term with professional guidance).
1) Have you figure out the going rate for comparable spaces in the area?
Before you step into any landlord’s office to talk about a lease, look around and figure out what comparable spaces are being rented for. Go from business to business and speak to the owners of those businesses.
More often than not, most business owners will be more than willing to share information with other businesses. When you have a general idea of the average price of rent, then you have some bargaining power.
2) What perks do you want with your commercial lease?
When you negotiate a commercial lease, the monetary cost is only one part of the deal. Parking space, utilities, and access may also be important considerations. Your business may require more available parking than your potential landlord is willing to offer up front.
Let him or her know that that’s a deal breaker if you can’t have the parking that you’ll need.
3) How long the space you’re interested in has been available?
If you are looking at a prime location, meaning a location that every business in town seems to be drooling over, and it’s only going to be available for a matter of days, then your ability to negotiate to a better price or perks will be limited…except if you deal with a professional.
If, on the other hand, the space has been empty with a sign out from advertising its availability for quite some time, you have more bargaining power.
Whenever a business has any kind of leverage when it comes to leasing space, then that business has the ability to negotiate to help save money, reduce overall costs, and also the time frame of the lease!
Landlords want to sign tenants for long periods of time, from one year to five or ten. If you have a new business and you’re not certain about whether it will survive one year, let alone two or more, then you don’t want to lock yourself into a long-term deal.
A commercial lease is a binding legal contract. Whatever you agree to, you are obligated to fulfill and that means that you will be responsible for any rent for the entire period of your lease.
If this makes you uncomfortable and your potential future landlord appears to not be willing to negotiate the commercial lease to terms that you are comfortable with, that doesn’t mean you have to sign on the dotted line. Call a commercial lease expert and get some professional help on your side.
Knowing some of the keys to the industry can go a long Real Estate Brokerage Firm Hiring way toward saving you money for your commercial lease.
Jean Louis Racine, Commercial-Lease-Expert.
[email protected]

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